Cost cuts help Japan producers improve earnings

Taiheiyo Cement’s operating profit in this segment is expected to jump 190% on the year to JPY7.6bn for the term ending March 2011, while Sumitomo Osaka Cement’s figure is seen at JPY3.4bn, up 24%.

Taiheiyo Cement estimates its cost reductions at JPY10.6bn this fiscal year. It halted production at three plants in the first half, lifting the domestic cement segment to its first interim operating profit in three years. The effects of an early retirement program for which 427 workers signed up are expected to manifest in the second half.

Sumitomo Osaka Cement slashed output capacity 20%, making facilities more fuel-efficient. Streamlining efforts are seen lowering costs by JPY1.2bn this fiscal year.
Published under Cement News